Chimera Investment CorporationNYSE
Tue, Oct. 4, 4:29 PM
- Chatter of the ECB's plan to begin tapering monthly bond purchases sent interest rates sharply higher today, and REITs sharply lower.
- The 10-year Treasury yield gained 6.3 basis points to 1.688%.
- The mortgage REITs (REM -2.2%): Annaly (NLY -3.1%), Armour (ARR -1.2%), Two Harbors (TWO -2.9%), Chimera (CIM -3.9%), CYS (CYS -2.4%), Invesco (IVR -3%), Western Asset (WMC -2.8%), MFA Financial (MFA -2.7%), AG Mortgage (MITT -3.1%)
- Equity REITs (VNQ -1.4%): Realty Income (O -2.6%), WellTower (HCN -2.6%), HCP (HCP -2%), Vereit (VER -2.3%), Equity Residential (EQR -0.9%), Simon Property (SPG -1.5%), Public Storage (PSA -1.8%), Government Properties (GOV -2.7%), Gramercy Property (GPT -2.2%), Stag Industrial (STAG -3%)
- ETFs: VNQ, IYR, MORL, REM, MORT, DRN, RQI, URE, SCHH, ICF, RWR, SRS, RNP, RFI, JRS, KBWY, NRO, DRV, RIT, RIF, REK, DRA, FRI, FTY, FREL, LRET, PSR, WREI, XLRE, IARAX
Wed, Sep. 21, 11:20 AM
- The SEC just charged Leon Cooperman with insider trading over Atlas Pipeline Partners, and Omega holdings such as Alitsource Portofolio, Navient, Aercap, and Tribune Media have knee-jerked sharply lower.
- A check of other top Omega holdings: First Data (FDC -1.3%), Allergan (AGN -0.9%), AIG (AIG +0.4%), Walgreens (WBA -0.6%), Dow Chemical (DOW), United Continental (UAL -0.7%), Ashland (ASH +0.3%), Chimera Investment (CIM -0.4%), Motorola (MSI +0.1%), HRG Group (HRG -1%), Microsoft (MSFT +1%), E*Trade (ETFC), New Residential (NRZ -1%), OneMain Holdings (OMF -2.3%), PVH (PVH +0.4%), UnitedHealth (UNH +0.7%), MGM Resorts (MGM -0.5%), New Media (NEWM -1.9%), Dish Network (DISH +0.5%), Synchrony Financial (SYF +1%), Eastman Chemical (EMN +0.3%).
- Previously: Cooperman holdings head south after insider trading charge (Sept. 21)
- Previously: Leon Cooperman charged with insider trading (Sept. 21)
Thu, Aug. 4, 7:43 AM
- Q2 core earnings of $95.5M or $0.51 per share vs. $109.5M and $0.58 in Q1. Dividend is $0.48.
- Economic book value per share of $14.65 vs. $14.46 three months earlier. Last night's close of $16.91 is a 15% premium to book value.
- Economic return of $0.67 for the quarter, or 18.5% annualized.
- Company significantly reduced interest rate exposure by cutting agency MBS holdings by $2.2B during quarter, with CEO Matthew Lambiase noting Chimera's (NYSE:CIM) edge is in mortgage credit.
- Previously: Chimera Investment misses by $0.02, beats on revenue (Aug. 3)
- CIM flat premarket
Wed, Aug. 3, 5:36 PM
Wed, Aug. 3, 4:08 PM
Tue, Aug. 2, 5:35 PM
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Thu, Jun. 30, 12:07 PM
- Following a meeting with management this week, analyst Brock Vandervliet has increased conviction on Chimera (CIM +1%) and his Buy rating.
- "Given the post-Brexit interest rate environment, the stock should be in the front rank of financial services sector investments." The company's portfolio of highly interest rate insensitive seasoned subprime MBS and subordinated tranches, along with a growing GNMA project finance portfolio leave it "exceptionally well-positioned."
- The dividend, he says, is "more than sustainable." While not expecting an imminent increase, the path at least is flat to up, in contrast with a grind lower in earning and dividends for other mREITs.
Fri, Jun. 24, 10:30 AM
- A sharp drop in long-term rates and vanquished expectations for even one rate hike this year has income players bidding up the prices of utility stocks (XLU +0.7%) and certain REITs even as the major average fall more than 2% post-Brexit.
- A check of Fed Funds futures finds traders not fully pricing in a 25 basis point rate hike until 2018!
- The mortgage REIT sector (REM +0.5%) welcomes the news, with players like Annaly (NLY +1.7%), American Capital Agency (AGNC +1.1%), Two Harbors (TWO +1.7%), and Chimera (CIM +1.3%) leading the way. Western Asset Mortgage (WMC -0.8%) is a laggard after slashing its dividend by more than 30% last night.
- Equity REITs are decidedly mixed. Retail names like Realty Income (O +2.4%), National Retail (NNN +2%), and Vereit (VER +0.9%) are higher, as are healthcare players like HCP (HCP +1.2%) and Medical Properties Trust (MPW +0.1). Apartment REITs are mostly lower, as are mall operators like Simon Property (SPG -0.8%) and General Growth (GGP -0.7%).
- The dollar is surging post-Brexit, however, and that's taking a chunk out of the hotel REITs: Hospitality Properties (HPT -1.5%), Sunstone Hotel (SHO -2.7%), LaSalle (LHO -3.8%), Pebblebrook (PEB -2.4%), RLJ Lodging (RLJ -2.5%).
- ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, PUI, SDP, PSCU, FUGAX, UTLF, JHMU, VNQ, IYR, DRN, RQI, URE, SCHH, ICF, RWR, SRS, RNP, RFI
Mon, Jun. 6, 11:27 AM
- "Due to its distinctive business model and predominantly credit rather than rate sensitivity, Chimera (CIM +1.1%) is well positioned for a wide range of economic outcomes," says Nomura, lifting the price target on the Buy-rated stock to $17 from $16 (current price is $15.36).
- Chimera, says the team, offers a mid-teen ROE, and a bank-line net interest spread without the burdens of bank-like regulation.
Sat, May 14, 11:33 AM
- The idea of rates lower for longer and a narrowing of credit spreads have helped lift the mortgage REIT sector by 22% since mid-February, but the group remains 17% below year-ago price levels, trades at a near-15% discount to book value, and yields 12%.
- Source: Barron's Amey Stone
- Still a buy? "There are different risks on the asset side, the funding side, and the hedging side,” says Wunderlich's Merrill Ross. She expects the Fed to be on hold until late this year, but notes that doesn't necessarily mean full-speed ahead for sector prices. Years of extremely low rates and expectations of soon-to-come higher rates have made it a "difficult operating environment."
- Lower rates aren't always a boon, and Nomura's Brock Vandervliet says a sharply flatter yield curve could would hit earnings and force dividend cuts. His favorites are sector gorilla Annaly Capital (NYSE:NLY), and Chimera Investment (NYSE:CIM). Chimera, he says, should benefit from regulatory changes allowing it to do more mortgage securitizations. Annaly is trading at just about a 5% discount to book value today vs. close to 20% not long ago. Chimera is actually trading slightly north of March 31 book value of $14.46.
- Ross' favorites are two where the dividends are solid: CYS Investments (NYSE:CYS) - one of the only pure-play agency MBS REITs left - and Invesco Mortgage (NYSE:IVR).
- ETFs: MORL, REM, MORT
Mon, May 9, 1:51 PM
- The average yield in the mortgage REIT sector is 14%, says analyst Bose George - probably warranted given falling book values, though things stabilized in Q1 for at least a few. His favorites are Two Harbors (NYSE:TWO) at 78% of book with a 12% dividend yield, and there's also American Capital Agency (NASDAQ:AGNC), Annaly Capital (NYSE:NLY), Chimera Investment (NYSE:CIM), and MFA Financial (NYSE:MFA).
- BDCs, says Ryan Lynch, have been stung by credit fears and trade at an average 87% of book value. His favorites - Ares Capital (NASDAQ:ARCC) and Hercules Capital (NYSE:HTGC) - both yield near 10%.
- Property & casualty insurers have high "cash-on-cash returns" thanks to share buybacks, says Meyer Shields, with Hartford (NYSE:HIG) and AIG standing out on that front. His favorite stocks, however, are lower yielders like Allstate (NYSE:ALL), National General (NASDAQ:NGHC), and XL Group (NYSE:XL).
- KBW also offers a basket of high yielders through the PowerShares KBW High Dividend Yield Financial ETF (NYSEARCA:KBWD). The fund currently yields 9%, and is higher by 20% in the past three months.
- Source: Barron's
Wed, May 4, 10:36 AM
- Ladenburg Thalman becomes the latest to throw in the towel on the habitually underperforming Armour Residential (ARR -0.3%), with a downgrade to Neutral from Buy.
- Meanwhile, Wells Fargo cuts Chimera Investment (CIM -1.1%) to Underperform from Neutral. The company reported pleasing Q1 results, but trades at less than a 3% discount to book value - pretty pricey in mREIT-land these days.
Mon, May 2, 4:53 PM
- Chimera Investment (NYSE:CIM) declares $0.48/share quarterly dividend, in line with previous.
- Forward yield 13.68%
- Payable July 29; for shareholders of record June 30; ex-div June 28.
Mon, May 2, 4:35 PM
- Q1 core earnings of $109.5M or $0.58 per share vs. $100.3M and $0.53 in Q4. Dividend is $0.48. Board expects it to remain at the level for the rest of the year.
- Economic book value of $14.46 per share slips from $14.65 three months ago. Today's close of $14.05 is just a 2.8% discount to book.
- Positive economic return of $0.29 per share for the quarter, or 7.9% annualized.
- Previously: Chimera Investment beats by $0.05, misses on revenue (May 2)
- CIM +0.3% after hours
Mon, May 2, 4:27 PM
- Chimera Investment (NYSE:CIM): Q1 EPS of $0.58 beats by $0.05.
- Revenue of $138.21M (-24.3% Y/Y) misses by $0.36M.
Mon, May 2, 8:42 AM
- The company sponsored CIM 2016-1 - a $1.5B securitization of seasoned residential mortgages. Paper with a total balance of $1.275B was sold in a private placement to institutional investors. Chimera (NYSE:CIM) retained interests in about $225M of notes, and also has an option to call the paper any time on or after April 2020.